ENTERPRISE SYSTEM

Small businesses implement enterprise systems to gain company-wide access to business knowledge,
increase employee productivity and minimize the duplication of company data. Enterprise systems may
also enable a business to reduce the cost of information technology and minimize the manual input of
data. These enterprise system attributes offer particular benefits, such as the support of teamwork, an
improved response to the marketplace, increased work quality and greater employee collaboration and
efficiency.

Defined as the large complex computing systems which handle large volumes of data and enable
organizations to integrate and coordinate their business processes. Such systems normally are a single
system central to organizations and ensure that information can be shared across all function levels and
management hierarchies.

Enterprise systems integrate a number of different applications, protocols and formats. In doing so, an
enterprise system allows companies to integrate business processes, such as sales, deliveries and
accounts receivable, by sharing information across business functions and employee hierarchies. These
systems can replace multiple independent systems that may or may not interact with other systems and
that process data to support particular business functions or processes.

For example, enterprise resource planning supports the entire sales process that includes pre-sales
activities, sales orders, inventory sourcing, deliveries, billing and customer payments. Enterprise
resource planning, supply chain management and customer relationship management systems are each
examples of enterprise systems.

TYPES OF ENTERPRISE SYSTEM

Customer Relationship Management
Customer relationship management systems were developed to address the need to raise a sales
department’s productivity and provide an effective way to increase sales. With CRM functions, such as
sales opportunity management, a company learns more about its customers’ needs and buying behavior
and combines this information with market information to enhance the quality of the company’s
marketing plans and sales forecasts.

Other attributes of the CRM system include integration with other systems and accessibility via mobile
devices, allowing employees to update and compare data and to access information from any client site
or other location. Equally importantly, CRM supports mass e-mail communications and automates the
sales process workflow to improve employee productivity.
Supply Chain Management
A supply chain is the collection of people, tasks, equipment, data and other resources required to
produce and move products from a vendor to a customer. Supply chain management refers to the
management of supply chain activities in an effective and efficient way to provide a company with a
strategic advantage.

These activities may include product development, material sourcing, production and logistics as well as
the information systems that coordinate these activities. Information flows allow supply chain partners
to coordinate their strategic and operational plans as well as the day-to-day flow of goods and materials
through the supply chain. The physical flows include the manufacture, transport and storage of goods or
materials.

Enterprise Resource Planning

The enterprise resource planning system integrates software applications, such as purchasing, finance,
human resources and inventory management. Within an ERP system, the integrated software modules,
such as sales, quality management and accounts receivable, communicate and share data. Each of these
modules consists of multiple applications that execute end-to-end business processes.

For example, the sales module includes the applications necessary to create and manage sales contracts,
sales orders, sales invoices and sales order pricing. ERP applications support not only various operational
and administrative tasks, such as the creation of an account payable or a time sheet, they may also be
customized to support a number of different industries, including oil and gas, retail and banking.
Enterprise resource planning (ERP) systems have become a critical tool for businesses over the past
several decades. An ERP solution automates critical business processes and serves as a shared database
for all financial and operational information from across the company. It pulls this data from a number
of modules built to help various departments, from accounting to supply chain to human resources,
perform their individual functions.

An ERP solution gives all employees access to the information they need to answer important questions
about their department’s current performance and future planning, as well as target areas for
improvement. This single source of information minimizes data accuracy and consistency issues and
ensures everyone is looking at the same numbers, no matter their role. It also drives better decision-
making that leads to more efficient processes and cost savings. Additionally, ERP can automate many
tasks, reducing errors and freeing up employees to focus on more strategic work.

Common ERP modules support back- and front-office functions like finance and accounting,
procurement, manufacturing, inventory management, order management, warehouse management,
supply chain management, customer relationship management (CRM) procurement and workforce
management. More functionally-rich solutions may also include professional services automation
(service resource management), human resources management, ecommerce and marketing
automation.

What Are ERP System Modules?

Each ERP module is designed for specific business functions, providing the data and supporting the
processes that will help those employees do their jobs. Every module plugs into the ERP system, so the
system provides a single source of accurate data, even as the business adds new modules. If the ERP
system is the toolbox, the modules are the screwdriver, wrench, hammer and other tools in the box that
each have specific uses.

How Do ERP Modules Help Businesses?

The modular design of ERP allows it to meet the shifting needs of a business and is a big reason this
software has become ubiquitous. An organization can purchase only the modules relevant to its
business model, operations and key challenges. It can then add ERP modules to address new needs or
challenges as the organization evolves.

The beauty of modular ERP software is that a company can add this functionality while keeping the same
foundation in place. There is no need to implement a new ERP system—a lengthy process—when
requirements change, as long as the company chooses an established ERP provider with a wide selection
of modules.

How Do ERP Vendors Charge for Each Module?

There is a wide variance in what is included in an ERP purchase and which modules vendors charge extra
for. Typically, the core financial functions are included with the base package, while features like CRM
and human resources management may cost extra. Some offerings are bundled by industry so, for
example, a manufacturer would buy a package with supply chain management included or a retailer
would buy a package with commerce included. On-premises ERP vendors typically charge an upfront
per-user license, while software-as-a-service (SaaS) vendors charge on a per-user, per-month or year
basis. In some cases, there are transaction-based charges.

1. Finance

The finance and accounting module is the most important ERP module because it allows businesses to
understand their current financial state and future outlook. Key features of this module include tracking
accounts payable (AP) and accounts receivable (AR) and managing the general ledger. It also creates and
stores crucial financial documents like balance sheets, payment receipts and tax statements.

The finance module can automate tasks related to billing, vendor payments and account reconciliation,
helping the accounting department close the books in a timely manner and comply with current revenue
recognition standards. It also has the data that financial planning and analysis employees need to
prepare key reports, including profit and loss (P&L) statements and board reports, and run scenario
plans.

2. Procurement

The procurement module, also known as the purchasing module, helps an organization secure the
materials or products it needs to manufacture and/or sell goods. Companies can keep a list of approved
vendors in this module and tie those suppliers to certain items. The module can automate requests for a
quote, then track and analyze the quotes that come in.

Once a company accepts a quote, the procurement module helps the purchasing department prepare
and send out purchase orders. It can then track that purchase order as the seller turns it into a sales
order and ships the goods, automatically updating inventory levels once the order arrives.
3. Manufacturing

The earliest version of ERP, material requirements planning (MRP) systems, were designed for
manufacturers, and manufacturing remains a key piece of ERP. Today, ERP systems typically have a
production management or manufacturing execution system (MES). The manufacturing module helps
manufacturers plan production and make sure they have everything they need for planned production
runs, like raw materials and machinery capacity. During the manufacturing process, it can update the
status of goods-in-progress and help companies track actual output against forecasted production. It
also provides a real-time picture of the shop floor, capturing real-time information on items in progress
and finished goods. It can calculate the average time to produce an item and then compare supply with
forecasted demand to plan adequate production.

4. Inventory Management

The inventory management module enables inventory control by tracking item quantities and location
down to individual SKUs. This module offers a complete picture of not only current but also incoming
inventory, through an integration with the procurement tool. This piece of software helps businesses
manage inventory costs, making sure they have sufficient stock without tying up too much cash in
inventory. An inventory management application can weigh sales trends against available product to
helps companies make informed decisions that boost margins and increase inventory turn (a measure of
how often inventory is sold over a certain period). It can help prevent stockouts and delays, which
enhances customer service.

Businesses that lack other supply chain management modules may also use the inventory management
application to handle purchase orders, sales orders and shipping. Larger organizations will need a
version of this solution that can track inventory across multiple locations.

5. Order Management

An order management module tracks orders from receipt to delivery. This piece of the ERP feeds all
orders to the warehouse, distribution center or retail store after customers place them and tracks their
status as they’re prepared, fulfilled and shipped to the customer. The order management module
prevents orders from being lost and boosts on-time delivery rates to keep customers happy and cut
unnecessary expenses for expedited shipping.
More advanced order management applications can help a company determine the most cost-effective
option for fulfilling an order—a store vs. a warehouse vs. a third-party fulfillment partner, for example—
based on available inventory and the buyer’s location.

6. Warehouse Management

A warehouse management module can deliver a rapid return on investment for businesses that operate
their own warehouses. This application can efficiently guide warehouse employees through all
warehouse processes based on the layout of the facility, from putaway when shipments arrive to picking
to packing and shipping. It can also help companies plan labor based on expected order volume. The
warehouse management module can support different picking strategies like batch picking, wave picking
and zone picking depending on which is most efficient for a given business, and some modules can show
employees the most efficient pick path.

When the warehouse management module is integrated with inventory management and order
management applications, employees can quickly find the right products and get shipments out the
door quickly. Faster delivery ultimately increases customer satisfaction.

7. Supply Chain Management

A supply chain management module tracks each step in the movement of supplies and goods
throughout the supply chain, from sub-suppliers to suppliers to manufacturers to distributors to
retailers or consumers. It can also manage any materials or products returned for refund or
replacement.

As noted earlier, supply chain management can include a wide array of modules like procurement,
inventory management, manufacturing, order management and warehouse management. However, it
may have functionality beyond the core capabilities of those modules.

8. Customer Relationship Management (CRM)

The customer relationship management (CRM) module stores all customer and prospect information.
That includes the company’s communication history with a person—the date and time of calls and
emails, for example—and their purchase history. A CRM improves customer service because staffers can
easily access all the information they need when working with a customer.
Many businesses also use CRM to manage sales leads and opportunities. It can track communication
with prospects and suggest which customers should be targeted for certain promotions or cross-sell
opportunities. More robust CRM modules may support customer segmentation (enabling more targeted
marketing) and advanced contact managers and reporting tools.

9. Professional Services Automation (Service Resource Management)

A professional services automation (PSA) module, also called a service resource management module,
allows an organization to plan and manage projects. Services-based businesses often use this module.
The application tracks the status of projects, managing human and capital resources throughout, and
allows managers to approve expenses and timesheets. It facilitates collaboration between teams by
keeping all related documents in a shared place. Additionally, the PSA module can automatically prepare
and send bills to clients based on rules around the billing cycle.

10. Workforce Management

A workforce management module is similar to a human resource management module but is designed
for companies with more hourly than salaried employees. It can monitor workers’ attendance and hours
and measure things like employee productivity and absenteeism.

Payroll could also fall under the workforce management module. A payroll sub-module automatically
distributes paychecks to employees on a set schedule with the appropriate taxes deducted and handles
expense reimbursement. It can also provide reports on payroll expenses, total overtime hours and
similar KPIs.

11. Human Resources Management

A human resource management (HRM) or human capital management (HCM) module usually
encompasses all the features of workforce management application and offers additional capabilities.
HRM could be viewed as CRM for employees. This popular module has detailed records on all employees
and stores documents like performance reviews, job descriptions and offer letters. It tracks not only
hours worked but also paid time off (PTO)/sick days and benefits information.

Since the HRM module stores a vast amount of information on every employee across the organization,
it eliminates a lot of duplicate or inaccurate data that many organizations store in various spreadsheets.
12. Ecommerce

Certain ERP vendors offer an ecommerce module for businesses that want to sell online. This module
allows companies to quickly launch a business-to-business (B2B) or business-to-consumer (B2C)
ecommerce website. Leading commerce applications include user-friendly tools that allow employees to
easily add new items, update product content (item descriptions, titles, specs, images, etc.) and change
the look and feel of the website.

When the ecommerce application is integrated with other ERP applications, all payment, order and
inventory information feeds [from the ecommerce module] into the shared database. That ensures all
transactions are added to the ledger, out-of-stock items are removed from the site and orders ship on
time.

13. Marketing Automation

Like with ecommerce, certain software providers have developed a marketing automation module. A
marketing module manages marketing campaigns across digital channels like email, web, social media
and SMS. It can automate email sends based on campaign rules and has advanced customer
segmentation features, so customers only receive relevant messages.

Marketing automation software, whether part of the ERP system or a separate solution, can provide
detailed reports on the performance of campaigns to shape future marketing plans and spend. These
applications increase leads, customer loyalty and, over time, sales

Modules Included in SAP Business One

SAP Business One is a business management software that contains modules accessed by users to
manage business operations and data. These modules contain various functionality sets and are
integrated to bring greater visibility, efficiency and productivity to growing small and midsize businesses.
What is the concept of modules in SAP Business One?
When we talk about modules in SAP Business One, we are talking about a collection of functionality sets
for business process that are organized by business department. Modules are accessed independently
but are integrated so that business processes and the way users enter business data is made more
efficient. Unlike software solutions that require you to pick and choose the modules you want to
include, SAP Business One modules are included and available for any user with a professional user
license. If you'd like you can restrict the modules accessed by professional users, or control the modules
available by purchasing a limited user license.

What modules are included in SAP Business One?

The modules in SAP Business One are located in a left hand menu when you open the software. They
can also be accessed from the top navigation drop down menu called "Modules." These are the
modules included in SAP Business One:

Administration: Contains user administration and system settings.

Financials: Contains accounting, chart of accounts, postings and financial reports

CRM: Contains activities and marketing

Opportunities: Contains sales opportunity records and reports

Sales - AR: Controls sales quotes, sales orders, deliveries and invoices

Purchasing - AP: Controls purchase quotations, purchase orders, goods receipts and vendor payments

Business Partners: Manage leads, customers and vendors along with their respective address and
contact details

Banking: Contains incoming and outgoing payments and bank reconciliation

Inventory: Manage all the items you buy and sell including all details

Resources: Contains resource master data and resource capacity planning

Production: Controls bills of material, production orders, routing and all manufacturing details

MRP: Contains a wizard to control inputs of demand in order to create recommendations for make and
buy scenarios

Service: Controls service contracts, customer equipment cards, service calls, and field service
management

Project Management: Contains projects, project tasks and issues, and project financial summaries
Human Resources: Controls employee master data

Reports: Contains out of the box reports across all modules

Further information can be found from What Is Included In SAP Business One

How do you determine what modules can be accessed by users?

Control user access to modules through one of 2 ways: By License Type, or through Security &
Administration. Licenses are either Professional or Limited user types. Professional users have access to
all the modules, limited users are given access to modules specific to finance, sales or logistics. For
companies with 1-5 users you could consider the Starter Package license which further limits the
modules included.

What modules can be accessed through the mobile app?

The SAP Business One mobile app contains these modules: Activities, Approvals, Alerts, Business
Partners, Inventory, Price Lists, Sales Opportunities, Sales Quotation, Sales Order, Delivery, Service
Contract, Service Call, Reports, and Dashboards. In general you must have either a professional, limited,
or mobile user license to access the SAP Business One mobile app. For more info on mobile, review SAP
Business One mobile.

Summary

SAP provides best-in-class business management software in SAP Business One by including functional
modules to help manage processes and data for small and midsize businesses. The core functionality
provided includes 90% of what all businesses need, and should your business require further modules or
functionality we have access to over 500 add-on products that expand the breadth and depth of your
solution.

Review this one page PDF for further details on the modules and functionality in SAP Business One.